S.1347 – Low-Cost options to Payday Loans Act 109th Congress (2005-2006)
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Text: S.1347 вЂ” 109th Congress (2005-2006) All given information(Except Text)
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Shown Right Right Right Right Here: Introduced in Senate (06/30/2005)
To authorize demonstration task funds to entities to give low-cost, little loans.
Mr. Akaka introduced the following bill; that was read twice and referred towards the Committee on Banking, Housing, and Urban Affairs
To authorize demonstration task funds to entities to present low-cost, little loans.
SECTION 1. give system for low-cost options to pay day loans .
(a) Quick name .вЂ”This area can be cited while the alternatives that areвЂњLow-Cost payday advances ActвЂќ.
(b) Definitions .вЂ”In this Act:
(1) C OMMUNITY DEVELOPING LENDER .вЂ”The term вЂњcommunity development institution that is financial means any company which has been certified as a residential district development standard bank pursuant to area 1805.201 of name 12, Code of Federal Regulations.
(2) F EDERALLY INSURED DEPOSITORY ORGANIZATION .вЂ”The term вЂњfederally insured depository institutionвЂќ means any insured depository institution (as defined in part 3 associated with Federal Deposit Insurance Act (12 U.S.C. 1813)) or any credit that is insured (as defined in area 101 for the Federal Credit Union Act (12 U.S.C. 1752)).
(3) P AYDAY LOAN .вЂ”The term loan that isвЂњpayday means any deal by which a little cash loan was created to a customer in trade forвЂ”
(A) the check that is personal share draft for the customer, within the level of the advance plus a charge, personalinstallmentloans.org/installment-loans-ga where presentment or settlement of these check or share draft is deferred by contract associated with the events until a designated future date; or
(B) the authorization for the customer to debit the deal account or share draft account for the customer, into the number of the advance plus a cost, where account that is such be debited on or after having a designated future date.
(c) Establishment of program .вЂ”The Secretary for the Treasury (known in this behave as the вЂњSecretaryвЂќ) is authorized to demonstration that is award funds (including multi-year funds) to qualified entities to present low-cost, tiny loans to people that will give you options to more expensive, predatory payday advances.
(d) Eligible entities .вЂ”An entity is entitled to be given a grant under this Act if this kind of entity isвЂ”
(1) a business described in section 501(c)(3) regarding the Internal income Code of 1986 and exempt from tax under part 501(a) of these Code;
(2) a federally insured depository institution;
(3) a residential district development lender; or
(4) a partnership made up of 1 or higher for the entities described in paragraphs (1) through (3).
( ag ag e) Application .вЂ”An qualified entity desiring a grant under this Act shall fill out an application into the Secretary such type and containing such information as the Secretary may necessitate.
(f) conditions and terms .вЂ”
(1) P ERCENTAGE SPEED .вЂ”For purposes for this Act, a qualified entity that’s a federally insured depository institution will be susceptible to the apr promulgated by the nationwide Credit Union management’s Loan Interest Rates under component 701 of name 12, Code of Federal Regulations regarding the that loan supplied up to a customer pursuant to the Act.
(2) F INANCIAL LITERACY AND EDUCATION POSSIBILITIES .вЂ”Each qualified entity granted a grant under this Act shall provide literacy that is financial training possibilities, such as for example appropriate guidance solutions or academic courses, every single consumer supplied with that loan pursuant for this Act.
(g) Limitation on administrative expenses .вЂ”Each qualified entity granted a grant under this Act can use no more than 6 % regarding the total number of such grant in almost any financial 12 months when it comes to administrative expenses of holding out of the programs funded by such grant this kind of financial 12 months.
(h) assessment and report .вЂ”For each year that is fiscal which a grant is granted under this Act, the Secretary shall submit a study to Congress containing a description regarding the tasks funded, amounts distributed, and quantifiable outcomes, as appropriate and available.
(i) Regulations .вЂ”The Secretary is authorized to promulgate laws to make usage of and administer the grant system under this Act.
(j) Authorization of appropriations .вЂ”There is authorized become appropriated into the Secretary, when it comes to give system described in this Act, such sums as might be necessary, which shall stay available until expended.